Friday, January 29, 2010

In his latest commentary entitled "The Ring of Fire" Bill Gross focuses on how investors should invest in 'less levered countries'. In terms of identifying such countries, Gross says to look for a growing consumer sector, low national debt levels, a savings oriented economy, and high reserves. He advises investors to find countries like Brazil and China, but ones that are less bubble-prone. Specifically, he points out to avoid the UK as their high debt coupled with possible currency devaluation presents high risk. Among countries that are already developed, Gross favors Canada and Germany.